Take advantage of our value-added solutions for all your currency needs, including active and passive hedging.
A separate currency overlay can provide significant cost-saving synergies for most international investors while also eliminating operational risks.
Our dedicated currency team has an average of 24 years of hands-on currency management experience. Today, we manage close to USD 71.3 bn1 in tailored currency overlay and share class-hedging solutions using specialized currency risk management systems and tools.
This combination of global market knowledge, in-depth local market expertise, and state-of-the-art systems and processes allows us to offer value-added solutions for all your currency needs, including active and passive hedging.
For any currency management solution, the objectives of the client are critical to the definition of a precise strategy. We consider the ability to provide tailored and flexible currency management solutions as one of our core capabilities. Most of our mandates are customized according to specific client preferences, currency exposures and/or risk constraints. We will work with you to determine the optimal parameters for your currency-hedging program, including the best execution setup.
Currency hedges are maintained and adjusted in line with client guidelines and the currency exposure of the underlying assets. MiFID II-compliant trading and reporting capabilities ensure competitive execution tailored to individual client requirements.
Share class hedging: optimized hedging and execution service that seeks to minimize tracking errors and reduce costs.
Portfolio hedging: value-added hedging and rebalancing strategy designed for individual client needs.
Tailored to specific client preferences, risk appetite, currency exposures, factors, and/or risk constraints
Rule-based hedging: systematic adjustment of strategic hedge ratios based on factors that have influenced foreign exchange rates in the past. For example, our rule-based hedging strategy provides an intuitive link between hedging cost, valuation, and hedge ratios for international investors.
Active hedging: discretionary management of hedge ratios within a given bandwidth (around the benchmark hedge ratio) based on “fair value” estimates, the behavior of exchange rates through the economic cycle, sentiment indicators, and technical analyses.
Currency for return: rule-based or discretionary strategies tailored to client objectives.
Henrik Pedersen, Senior Portfolio Manager for Currency Management at Credit Suisse Asset Management, explains how investors with unintended FX exposures can benefit from currency management solutions provided by a dedicated expert team.
1 Currency exposure under management at Credit Suisse Asset Management. As of 31.12.2022. Includes USD 29.1 bn in benchmark replication for index funds.
